＜Research＞Daiwa Downgrades KINGDEE INT'L (00268.HK) to Outperform, Chops TP to $7.1

　　Daiwa noted in a report that it expected KINGDEE INT'L (00268.HK) -0.180 (-2.835%) Short selling $7.84M; Ratio 4.368% 's revenue and new order growth to slow down this year due to weak corporate demand. 1H24 revenue growth is forecasted to rise 12% YoY to RMB2.88 billion, while loss is projected to be RMB255 million. The broker lowered its revenue forecast for 2024-26 by 1-2% due to slower growth in ERP business and SME orders.

　　Daiwa axed KINGDEE's target price from $13 to $7.1 and downgraded its rating from Buy to Outperform, as it believed this price level is still attractive for long-term investors to increase their holdings.

　　Daiwa pointed out that KINGDEE's share price has crashed 17% since Monday because the compound annual growth rate of revenue is still short of its target. Still, the broker believed the market had overreacted. While the company is not immune to the uncertainty in the external economy, it remained the broker's favourite in the mainland enterprise software segment, as the company is considered to be less affected than its peers due to its increased market share in large enterprises and higher revenue from recurring subscriptions.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-17 16:25.)